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$27 Trillion AUM Stakes in Bitcoin and Crypto: CoinShares CSO

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There are at least $27 trillion in assets under management by major US financial institutions that are also “actively” seeking to give clients exposure to Bitcoin (BTC) and cryptocurrencies.

June 26, CoinShares Chief Strategy Officer Melt Demirors highlighted at least eight major financial institutions that signaled moves in the digital asset space, including the BlackRock Bitcoin ETF spot and Fidelity’s crypto asset management solution.

Others include JP Morgan, Morgan Stanley, Goldman Sachs, BNY Mellon, Invesco and Bank of America.

“Many of the largest financial institutions in the U.S. are actively working to provide access to Bitcoin and more,” she noted, adding that between them there is a whopping $27 trillion in assets under management.

Earlier this month, the June 16 BlackRock Bitcoin Fund traded on the exchange application led to a wave of requests for similar products, fueling a narrative suggesting that “institutions are coming” for bitcoin.

BTC price reached a high of $31,185 on June 24, 2023, thanks to growing confidence, according to CoinGecko.

However, Demirors noted that while “institutions are coming”, it is still more of a trickle than a wave. “We see the bridges being built in real time,” she added.

It should be noted that the $27 trillion figure is an estimate of the total assets under management at the eight institutions, and only a small portion of that would likely be allocated to crypto investments.

However, co-founder of Reflexivity Research, Will Clemente, still it sounded Demiror’s sentiment, pointing out that Bitcoin’s market cap is below $600 billion.

“Between HSBC, Blackrock, Fidelity and Schwab, we’re talking about $25 trillion in assets under management that will soon be able to buy bitcoin.”

Institutional investors are already showing more interest in bitcoin-related funds. The ProShares Bitcoin Strategy ETF (BITO) saw its biggest weekly inflow in a year, pushing AUM past $1 billion. reported by Cointelegraph.

Related: BlackRock’s Bitcoin ETF ‘is the best thing to happen’ to BTC, or is it?

Earlier this week Federal Reserve Board of Governors member Michelle Bowman criticized the absence of a regulatory framework for cryptocurrencies, arguing that uncertainty about the asset class traps institutions in a “supervisory void”.

Magazine: Cryptocurrency Regulation: Does SEC Chairman Gary Gensler Have the Last Word?